A Reasearch Of The Global Quick Response Mechanism Of Transnational Corporation

With the rapid development of science and technology, accelerating change of international market demand and gradual globalization of market competition, the global market environment of transnational corporations' presents more and more dynamic complexity. The dynamic complexity of the global market environment makes transnational corporations' traditional operating mechanism unable to guide its global business activities effectively. In order to adapt to the global market environment with dynamic complexity, transnational corporations' global operating mechanism must carry on the corresponding change, set up a set of global operating mechanisms which meets the dynamic complexity of global market environment.Before the 1990s, no matter from the geographical angle or in terms of industry, everywhere in the world there are undeveloped markets. Faced with numerous development chances, transnational corporations' greatest challenge lies in how to raise for and distribute resources in order to realize regional and industrial expansion. After global expansion of more than one century, transnational corporations' business activities have almost permeated through all industry fields of all countries, and the expandable space based on geography and industry has reduced greatly in the world. Transnational corporations' global operating mechanism makes gradual changes from paying attention to scale economy and scope economy to paying attention to speed economy. In speed economy, transnational corporations' global quick response ability replaces capital progressively, and becomes the most precious and rare resources in constructing global competition advantage. The intensive global quick response mechanism gradually substitutes the traditional extensive regional and industrial expansion mechanism.Any kind of global operating mechanism of transnational corporations is the result of a specific era, and it is closely related with the global market environment at that time. With the rapid development of science and technology and accelerating change of international market demand, the supposed relatively stable and measurable global market environment in the past does not exist any more. Transnational corporations cannot make a long-term regional and industrial expansion plan as in the period of global steady market environment. Transnational corporations need to regard the dynamic complexity of global market environment as a given condition and learn to seek development in the dynamic complexity. Victors In the future are companies that regard the dynamic complexity of global market environmentas opportunities rather than evade it.Transnational corporations' global operating mechanism refers to a kind of operation system that the transnational corporation forms on the basis of understanding of specific global market environment, that is, instructing the business activities of companies with what kind of operation criterion and management notion. This dissertation proceeds from train of thought of the gradual progress of the global operating mechanism of transnational corporations, and proposes transnational corporations' global quick response mechanism in good time according to the dynamic complexity of global market environment at present. Compared with the traditional operating mechanism of the transnational corporation in the global market, the global quick response mechanism has a lot of characteristics.The first one is the full play of the dynamic role of subsidiaries. Transnational corporations' traditional operating mechanism regards overseas subsidiaries as "entrants of overseas market" or "acceptors of advantages transited from parent companies". Transnational corporations' exclusive advantage only exists in the parent companies, and the parent companies are the axis of the global operating mechanism. With the constant increase of pressure from quick response to local market demand, transnational corporations have to revise its traditional operating mechanism and constantly expand the decision-making power of subsidiaries in operation, so as to improve its potentiality to utilize the knowledge of local market effectively, and thus to improve their responsibility to local market. In brief, transnational corporations' global quick response mechanism requires transnational corporations to pay attention to and give play to the dynamic role of the local subsidiaries.The second is a good master of the value trends of global market. People's life time is very limited, and the mankind is the only animal which receives time-constrain. The finiteness of life time is exactly the origin reason why the concept of "value" exists in the world. According to the statement of economics, the essence of value is the rareness of time, a kind of most basic resource. The course of industrialization of human society is the course of time evolvement, from surplus to abundance and then to deficiency in time. When more and more things are produced and consumed, we are facing the state of lacking more and more time too. Time is the origin of the value, and time is more and more rare. If we want to create more value for customers, we must accelerate the reaction speed so as to save time for the customers.The third is the effective response to global dynamic market competition. Under the environment of global market with dynamic complexity, new competitors appear constantly, and any idea of attempting to eliminate the rival is not all very realistic. Transnational corporations should change the competition rule of the trade through constant innovation, to make the rival's strategy lose efficiency, and thus to make the rival unimportant. Under the environment of global market with dynamic complexity, the competitionadvantage of transnational corporations can emerge rapidly, and may disappear rapidly. By destroying current situation and disintegrating existing advantage actively, transnational corporations shift rapidly from one temporary advantage to another. This kind of self-competition through fast innovation is the marrow of transnational corporation's global quick response mechanism.The last characteristic is the closer connection with the business partnership in the world. Under the environment of global market with dynamic complexity, the life cycle of products is shortened day by day with the faster change of technology, and the market opportunity is transient. Transnational corporations feel more and more difficult to deal with this kind of fast and changeable global market environment by depending on their own strength. So, the inter-corporation cooperation aiming at taking quick response has become the effective way of adopting to dynamically complicated global environments. That is to say, facing such a new global market environment, transnational corporations must form a closer cooperation relationship with their global suppliers, retail traders, retailers, alliance traders and customers, so as to catch the market opportunities and to rapidly develop the products that users need.The most remarkable characteristic of the global operation of trans -national corporations is multi-functions of companies and multi-scope of business in a lot of areas. According to this kind of characteristic of the global operation of transnational corporations, this dissertation builds a analyzing framework of "global fast reaction magic cube" of transnational corporations with three variables such as functional dimension, regional dimension and business dimension. If transnational corporations want to improve their global reaction speed, they must meet two requirements. One is to make every "magic block" of "global fast reaction magic cube" have abundant flexibility. That is to say, every functional department, every regional market and every business unit of transnational corporations has abundant activation. The other is to make the different dimensions of "global fast reaction magic cube" of transnational corporations integrated, in order to improve the speed of whole operation. In his sense, transnational corporations must make functional departments integrated, make regional markets networked, and make business units associated, so as to break the blocking of function interface, the division of region interface and separation of business fields.During the course of global operation of transnational corporations, because of their more and more global functional departments, greater and greater range of regional market and wider and wider operational activity, the final result is that the organizational scale of transnational corporations expands sharply. The sharp expansion of the organizational scale make their response to global market environment stagnant. In this way, Transnational corporations will form the global quick response system by the way of outsourcing and alliance, that is, outsourcing some functions and business originally belonging to the operation of companies, or carrying on the alliance...